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It’s Brilliance or Nothing for The Creative Counsel Co-Founders

The Creative Counsel is a wild ride. It’s certainly not for the faint-hearted. And co-founders Gil Oved and Ran Neu-Ner have radically changed one of the oldest and most traditional industries in modern business.

Nadine Todd

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Vital Stats

  • Players: Gil Oved and Ran Neu-Ner
  • Company: The Creative Counsel
  • Group: 8 companies
  • Employees: 1 100 permanent, and 1 000s more on a casual basis for activations
  • How they started: TCC Activations, the founding business, is the biggest below-the-line marketing agency in South Africa
  • What they do: TCC finds ways to help its clients get products into stores and onto shelves, and then get those client brands off shelves and into consumer hearts, minds and homes.
  • Turnover: R700+ million
  • Visit: www.creativecounsel.co.za

If there are two things Ran Neu-Ner and Gil Oved are sure of, it’s that an unrelenting focus on brilliance pays off, and that successful businesses are built on great people.

The problem is that they operate a company driven by excellence, and that comes at a cost: High staff turnover and burnouts.

Related: The Creative Counsel: Ran Neu-Ner and Gil Oved

Their interview style is tough, almost combative, because they know that their industry, and particularly their company, is most people’s ‘not’ cup of tea. But those who do suit the culture find a fit in a R700+ million company that actively promotes personal and business development, will give you as much responsibility as you can take on, and will handsomely reward you.

A fly on the wall of a Creative Counsel job interview would think that co-founders Ran Neu-Ner and Gil Oved don’t want to hire new people. It’s a combative environment. The tension is palpable. Zoom in to the candidate in the hot seat. They’re sweating bullets. They gulp. The questions are flying thick and fast, why, why, why.

No answer is good enough. It’s followed quickly by another why. There’s no time to pull up rehearsed answers. The interviewers are getting to the heart of the candidate – who they are, what they value, and what their work ethic really is.

If the candidate makes it through the interview in one piece, and comes back for more, then maybe, just maybe, they have what it takes to thrive at TCC. But Neu-Ner and Oved aren’t going to make it easy. The word ‘easy’ isn’t in their vocabulary.

Starting with the end in mindGil-Oved-creative-counsel

The Creative Counsel’s exceptional results over the last 15 years have been driven by a relentless focus on six key, non-negotiable pillars, all of which are centred on how well their employees deliver on TCC’s mandate.

Finding the right people is an essential first step to this process, and it starts with the company’s very first engagement with each employee: The interview.

“For years we had issues around high staff turnover. We realised that the problem started in the interview process. We were hiring the wrong people who didn’t suit our culture, and they would quickly burn out, or challenge our expectations. We realised that 80% of the success of a hire is culture. We just needed to find a way to test culture, as most candidates will tell you what they think you want to hear in an interview.

“Natie Kirsh used to recommend going for a drive. He said that if you sit in the passenger seat and just chat, asking any questions that come to mind, the candidate will soon reveal themselves in the simplest ways. You’ll see the person, and you can make a judgement call on whether they suit the requirements of the position and the company.

“For us, we focus on leading questions. For example, you’re driving to an interview and you’re five minutes late. The robot in front of you goes from green, to orange, to red. What do you do? You’ve just missed orange. How they answer this reveals a lot about their personality.

“We also love the questioning method of four-year olds. Whatever the answer to a specific question is, follow it with a ‘why’. At the beginning it’s not even about the answer. Candidates will always arrive at an interview with certain rehearsed answers. If you keep asking why, eventually they have to start giving you completely unrehearsed, unplanned answers, and that’s when you’ll get a real sense of who they are.

“We also believe it’s important to put pressure on the candidate — again, that’s when you see their mettle. We hate the question ‘what’s your worst quality’. The answer is always their best quality disguised as their worst, like ‘I’m a perfectionist’. But if you ask why, they’re suddenly scrambling for an answer.

“We’re known for our tough interviews. In South Africa, we’re too courteous. We take the opposite approach. We love questions they’re not expecting. This business is most people’s ‘not’ cup of tea. We almost try to convince you not to join us. If you come back after that, you’ll handle the pressure, and we can give you the support and environment to really fly.”

Related: Gil Oved’s Lessons Learnt: Be The Grandmaster of Your Game

“Our culture is immersive, all encompassing. We want to be a part of your life. We’re proud of our business and the brands we promote. Our teams need to feel that way too.”

Building teams to win

TCC’s team is built on a simple analogy. There are 11 football players on the field, but hundreds tried out for those positions. Only the best make the cut, but they’re also the 11 that are willing to do anything to win. They’ll bleed for their team. That’s a winning culture, and it’s vital if you want to be the best.

The six pillars give the team a framework to work within and follow.

“All six of these pillars are natural to our personalities (well, five of them are, one’s just smart business). They’re the result of us articulating why we believe we’ve been a success, and then finding a way to instil those traits and beliefs into the organisation as a whole.”

Brilliance or nothingran-neu-ner-creative-counsel

“Don’t accept anything less than brilliant. This isn’t about hard work. It’s about output. We’re a top agency in a difficult field. If you’re a member of our team, you need to play at your best. It’s a demanding statement because there are no degrees or gradients. It’s either brilliant, or it isn’t. 100 or 0.

“There are consequences to this – cause and effect. It comes at a cost: Burning people out and high staff turnover; it’s not natural for people to perform at this level 24/7/365. We understand that, and if you do, you will be supported and rewarded. But if you don’t, you don’t belong here.”

 

Win by a mile

“When we present, clients ask for one concept. We give them three. That’s the way we approach everything. We literally want to leave our competitors so far behind we can’t even see them. We always say that if you’re going to go into a fist fight, take a grenade. We’re also proponents of the virtues of constructive paranoia: Never underestimate what your competitors are doing.

“It’s a sign of the times that we’re the number one agency in South Africa in terms of staff size and EBIT, and yet we’re also an unconventional, non-traditional agency. It shows how things are changing, and how quickly.

“Everything’s moving at an incredibly fast pace: New thing, new thing, new thing, and if you want to stay ahead of the curve, you need to be leading those new things, not following. It’s fatiguing, but so important.

“This is so engrained in us though. We, Ran and Gil, are the two biggest competitors here, and that drives us. We’ve always sat next to each other, competing. We were so busy competing against each other that we left our competitors behind.”

Grow those who grow our business

“Suppliers, partners, staff – we proactively assist and find ways to grow people and their businesses. We’ve never done this according to brief.

“We don’t make our staff climb the corporate ladder just because. If they shine, we bounce them, whether they’re 27 years old or 47 years old. This isn’t about experience – it’s about skill, competency and hunger. If you’re a maverick who wants responsibility, we’ll give it to you.

“In an industry notorious for retrenchments based on contracts being won and lost, we’ve also never retrenched staff – not in 14 years. We’ve fired people, but we’ve never retrenched anyone. We’re a large employer, and we’re proud of that. We create employment, and if you give your heart and soul to the business, you’ve got guaranteed employment.

“This same focus on growth extends to our suppliers as well. We pay very quickly. We don’t generally ask for credit terms. We know that if we get them their cash quickly, it makes a huge difference to their business. Guys know we care about their companies. We love that they’re making profits from us as well. That’s what grows their business. As a result they’re fair to us too – they don’t rip us off. And most importantly, when we really need them, when we have to deliver something quickly, they’ll bend over backwards for us.”

Healthy heated debatecreative-counsel-office

“The rule is simple: You can challenge anyone, at any time, but you must play the ball, not the man. It’s not allowed to get personal. So we can say to each other, what you’ve said is idiotic. But we can’t call each other idiots.

“We really believe in a sense of competition, and healthy, heated debate is part of this. It’s bred into our backgrounds. You respect your parents, but if you disagree with something they’ve said or decreed, that’s where the negotiation begins. You need to find the angle to get your way.

“Both of our offices have one glass wall that faces the rest of the floor. We’ve created an egalitarian workspace that strips down hierarchies. We’re completely open plan, and even though we do have offices (and wish we didn’t), we’ve kept them as transparent as possible. Everyone can see what we’re doing, at all times. But this means everyone can see us fight as well. We always laugh at newbies to the company.

“Within their first week, at some point, one of us will be in the other’s office and we’re shouting at each other. What follows is the invariable wide-eyed question to their manager: Is the business closing down? The reply is always, nope, that’s just Ran and Gil. And so their induction to healthy, heated debate begins.

“We really believe that the more and harder you debate something, the better. You chip the block away from all angles, and you’ll find the best answer and a better result.

“As business partners, we might not always agree with each other, but we’ve always had the same intent: What’s best for the business? Logic will prevail. Yes, we also have egos, but we always know that if logic prevails, the best decisions are made for the good of the business — but we also approach each debate with an attitude of ‘you better really convince me I’m wrong.’

“And this filters down to the whole company, from managers to new employees. Anyone can challenge anyone, as long as it’s not personal and logic prevails.

Related: Advice: 2 Minutes with SA’s Top Entrepreneurs

“We end up with juniors who think they have a right to challenge us – and they do. If Ran tells a junior copywriter his idea is bad, he can (and will) fight for it. On one memorable occasion, a junior copywriter actually came back six times to defend his idea, until he finally won the debate. Logic prevailed and he proved to Ran that he was right. In front of everybody – this didn’t happen quietly behind a closed door.

“This is so engrained in the company and our culture, that negativity and personal attacks are nipped in the bud – and we don’t need to do it, the staff do it. They approach someone who is getting personal and call them out on it. That’s not the way things are done here. When a culture is properly engrained and supported, employees themselves will maintain and defend it.”

Colleagues first; everything and everyone comes after

“This is the only one that didn’t come to us naturally. Clients come first, that’s always been our motto. So much so that in our start-up days Gil was called our ‘doctor on call’. It didn’t matter what he was doing, if his phone rang he’d answer the call and see to the client. Nothing was more important.

“As we grew though, we realised that it wasn’t just the two of us anymore, and you can’t deliver to clients without a happy family. That’s why this pillar is so important.

“If you walk out of a meeting and have two calls, and one’s a client and the other’s a colleague, your first instinct is to call the client first. That’s the wrong response. You don’t know why your colleague is calling. It could be to warn you about something related to the client.

It could be because they have three clients waiting on an answer or input only you can provide. Family must come first.

“It’s also important for everyone on the team to know that their managers, colleagues and us have their back. Once you know that you’re supported, you’re more likely to make key decisions on your feet, and those are generally the decisions that drive the business forward.

“Of course we try not to lose clients, but the reality is that there’s no real client loyalty. It’s the nature of the industry. You’re always pitching for your next campaign, and the client will choose what’s right for them, not for you. But your team should be here to stay, so care about them and look after them.”

Partner with integrity

“Do everything with integrity. Creating demand, finding a spin, convincing people to spend their cash: This isn’t an industry known for integrity. But we know that money comes and goes, but reputation is forever. That should always be your focus, and the rest will look after itself.”

Getting your growth oncreative-counsel-office-lunch-room

It took Neu-Ner and Oved five years to hit their first R100 million in turnover. It’s an impressive number, and yet they believe it should have happened much quicker.

“At the time, we’d been so busy working in the business that we looked up and we’d hit R100 million. If we knew then what we know now though, that point would have been reached much quicker.

“One of the biggest reasons our early growth was slow was because we needed a five year view, but we only had a one year view. We didn’t trust our own growth plans, and as a result we didn’t have proper systems in place, or the guts to hire the right people for the right jobs. We didn’t believe enough in ourselves and our ‘big’ business.

“We started hitting a proper growth curve when we realised this and changed our attitude. Too many entrepreneurs know that they should hire people better and smarter than them, but they’re scared. They don’t want their position as business owner, leader and largest shareholder invalidated.

“The realisation that as the entrepreneur, you’re the one who takes the risk, who recognises the talent and who brings a winning team together completely validates your position. This is when the tipping point occurs, and also when you can start focusing on real growth strategies.”

Another key point that Neu-Ner and Oved highlight is that entrepreneurs have a tendency to believe that their personal touch is all important – if they aren’t involved in everything, the business won’t succeed. They’re also very conservative about costs. “Eventually, if you’re lucky, and you’ve still managed to build a sustainable, growing enterprise, the business will get too big, and you’ll need to let go.

Related: 10 SA Entrepreneurs Who Built Their Businesses From Nothing

For us, if we’d let go sooner, we’d be ahead of the curve. We wasted a lot of time and resources thinking small.”

One of their key examples is the finance department: “We’re two born entrepreneurs – neither of us likes systems and processes. Our sales were always faster than the systems we could implement, which has meant our systems are always playing catch-up. Even though we understand this, we still waited far too long before putting a proper finance department in place.

“In terms of job titles – and this is true of pretty much all job titles – the difference in cost to company between a mediocre employee and the best in the market is about 20%. But the difference in output is 100%. Today we know to just pay the money. A good financial director costs about R250 000 per year more than an okay financial director. But the mistakes that the good FD stops you from making can run in the millions. We know that if we’d had that vision years ago, we would have saved millions.”

Turnover vs profit

There are different levels of growth, and they’re often dependent on your company’s lifecycle.

“First, you’re just trying to stay open and pay your bills. You’ll be fine, but you need to maintain growth, which impacts your personal life and health. The next level, which for us happened in 2011, is putting a management structure in place. If you really want to grow, it’s important for this to be a top-class management team.

“This is an area where we had previously made mistakes. You’re trying to do things on the cheap, which results in two things: One, you have poor or incorrect hires, or two, you end up with ‘compression’ managers, where all managers (including us) are performing multiple roles – your role, and the role below you. No one is working exclusively at their pay level, and that impacts the more strategic growth areas of the business.

“During this first period, you’re concentrating on top line growth. This is important. Revenue gives you the confidence to build your business. It allows you to become a player in the market, to scale and to leverage your suppliers (the bigger you are, the more you purchase, the better you are as a client, the more you can negotiate better rates, and so on).

“But with revenue comes a cost of sales as well. All revenue that comes into the business has certain responsibilities tied to it – supplier invoices, salaries, overheads. This is where the next level of growth comes in.

“Efficiencies are where you save money, and this directly impacts the bottom line and your profits. Revenue and efficiencies are not mutually exclusive, but where you are in your lifecycle will dictate which is more important and requires more focus.

“Get revenue first. Once you’ve started growing though, it’s time to focus on efficiencies and EBIT (earnings before interest and tax). If you ignore that, you’ll never make great profits.

“Our analogy is that revenue is the fuel that drives your car. Without fuel your car won’t move, so it’s important. But once you’re on the highway, you can now start worrying about efficiencies – how far can you travel on one tank, where are your efficiencies, where can you save on fuel costs?

“Revenue is important. But, it’s not about turnover; it’s about leftover. From a turnover perspective, we’ve had good, steady growth since we launched. We reached a point where our turnover could no longer double though, and that’s when we started looking seriously at our earnings. In 2014, our earnings doubled.

Related: Surprising Things 5 Entrepreneurs Do in Their Lunch Breaks

“We’ve invested in systems, in managing the business better, and we’ve become a lean, mean operating machine. We watch our costs, and we look for every little efficiency we can find. The results have been phenomenal, and that’s where real future growth and earnings lie.”

Nadine Todd is the Managing Editor of Entrepreneur Magazine, the How-To guide for growing businesses. Find her on Google+.

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1 Comment

1 Comment

  1. TheTruthHurts

    Oct 8, 2015 at 08:53

    Seems their “marketing” efforts did not stop when they were interviewed for this article.

    The reason for the EXTREMELY high staff turnover is because they treat their staff like absolute cr@p. They also pay their staff very badly.

    All this while they live lives of luxury. It’s no wonder they can each afford to permanently live in a huge suite at the Michaelangelo Towers Hotel.

    Don’t believe the drivel they are spouting about themselves. They are not nice people, and reading between the lines in this article shows it.

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Entrepreneur Profiles

6 Lesson Gems From Appanna Ganapathy That Helped Him Launch A High-Growth Start-Up

Twenty years after first wanting to own a business, Appanna Ganapathy launched ART Technologies, a business he aims to grow throughout Africa, starting with Kenya thanks to a recently signed deal with Seacom. As a high-growth entrepreneur with big plans, Appanna spent two decades laying the foundations of success — and now he’s starting to collect.

Nadine Todd

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appanna-ganapathy

Vital Stats

Like many entrepreneurs before him, Appanna Ganapathy hadn’t even finished school and he was already thinking about his first business venture. A friend could secure the licensing rights to open Nando’s franchises in Mozambique, and they were very keen on the idea — which Appanna’s mom quickly dampened. “You can do whatever you want,” she said. “As long as you finish your degree first.”

Unlike many other entrepreneurs however, Appanna not only finished his degree, but realised that he had a lot of skills he needed to develop and lessons to learn before he’d be ready to launch the business he wanted.

“We launched ART Technologies just over two years ago. If I had started any earlier, I don’t think I would have been as successful as I am now,” he says.

Here are six key lessons that Appanna has learnt along his journey, which have allowed him to launch a high-growth start-up that is positioned to make an impact across Africa.

1. You don’t just need a product – you need clients as well

Business success is the ability to design and execute a great product and solution, and then be able to sell it. Without sales, there is no business. This is a lesson Appanna learnt while he was still at university.

“I was drawn to computers. I loved figuring out how they worked, playing computer games — everything about them,” he says. “My parents lived in Mozambique, and during my holidays I’d visit them and a friend who had a computer business. I helped him assemble them and thought I could do this too while I was studying. I convinced my dad to buy me a car so that I could set up my business — and never sold or assembled a single computer. I delivered pizzas instead.”

So, what went wrong? The simple truth was that at the time Appanna had the technical skills to build computers, but he lacked the ability to sell his product.

“If someone had said, ‘I’ve got an order for 30 computers’, I would have filled it — but to go out and get that order — I didn’t really even know where to start.”

2. Price and solution go hand-in-hand

As much as you need the ability to sell your solution, you also need a market that wants and needs what you’re offering, at a price point that works for everyone.

In 2007, Appanna was approached by a former supplier whom he had worked with while he was based in Mozambique. The supplier had an IT firm and he wanted to expand into South Africa. He was looking for a local partner who would purchase equity shares in the company and run the South African business.

“I loved the opportunity. This was something I could build from the ground up, in an area I understood well,” says Appanna. The firm set up and managed IT infrastructure for SMEs. The value proposition was simple: “We could offer SMEs a service that they could use for a relatively low cost, but that gave them everything an enterprise would have.”

The problem was that although Appanna and his team knew they had a great product, they were competing on price with inferior products. “If we couldn’t adequately unpack the value of our solution, an SME would choose the cheaper option. It was a big lesson for me to learn. It doesn’t matter how good the solution is that you’re offering — if it’s not at a price point that your target market accepts, they won’t choose you.”

It was this understanding that helped Appanna and his team develop the Desktop-as-a-Service solution that ART Technologies now offers the SME market.

“While I was developing the idea and the solution, I needed to take three key things into account: What do SMEs need from an IT infrastructure perspective, what is the most cost-effective way to offer them that solution, and what will the market pay (and is it enough to cover our costs and give us a small profit margin)?”

Appanna’s experience in the market had already taught him how cost-conscious SMEs are, and so he started developing a solution that could deliver value at a price point SMEs could accept. His solution? A unique Desktop-as-a-Service product that combines all the processing power and Microsoft products a business needs, without any capex outlay for servers or software.

“It’s a Cloud workstation that turns any device into a full Windows computer,” Appanna explains. “We hold the licences, and our clients just access our service. A set-up that would cost between R180 000 and R200 000 for 15 users is now available for R479 per user per month.”

It took Appanna and his partners time to build the solution, but they started with the price point in mind, which meant a solution could be designed that met their needs as well as the needs of the market.

“Too many businesses set everything up, invest in the solution, and then discover they can’t sell their product at the price point they need. My time in the market selling IT and infrastructure solutions gave me invaluable insights into what we needed to deliver on, and what we could realistically charge for our service.”

3. Get as much on-the-ground experience as you can

appanna-ganapathy-art-technologies

The time that Appanna spent building the IT firm he was a part-owner of was invaluable. “I started as a technical director before being promoted to GM and running the company for three and a half years. Those years were very, very important for me. They’re where I learnt everything about running a business.

“When I started, I was responsible for sales, but I didn’t have to actually go out and find clients, I just had to meet them, compile quotes and handle the installations. Everything I did was under the guidance of the company’s CEO, who was based in Mozambique. Being the guy who did everything was the best learning ground for me. It set me up for everything I’m doing today. In particular, I learnt how to approach and deal with people. Without people and clients your business is nothing.”

Appanna didn’t just learn by default — he actively worked to expand his understanding of all facets of the business. “At the time I wasn’t planning on leaving to launch my own business,” he says. “I was a shareholder and I wanted to grow that business. That meant understanding as much as possible about how everything worked. If there was something I wasn’t sure of — a process, the numbers, how something worked — I asked. I took personal responsibility for any errors and got involved in every aspect of the business, including areas that weren’t officially ‘my job’. I wanted to really grow and support the business.”

4. Stay focused

Interestingly, while the experience Appanna has accumulated throughout his career has allowed him to build a high-growth start-up, it also taught him the importance of not wearing too many hats as an entrepreneur.

“I’m glad I’ve had the experience of wearing multiple hats, because I’ve learnt so much, but I’ve also learnt that it’s important to pick a lane, not only in what you do as a business, but in the role you play within your business. I also race superbikes in the South African Kawasaki ZX-10 Cup; through this I have learnt how important it is to focus in the moment without distractions and this is a discipline I have brought into the business.”

“If you’re the leader of an organisation, you need to let things go. You can’t be everything to everyone. When I launched ART Technologies, I knew the key to growth would be the fact that although I’m technical, I wasn’t going to run the technical side of the business. I have strong technical partners whom I trust, and there is an escalation framework in place, from tech, to tech manager, to the CTO to me — I speak tech and I’m available, but my focus is on strategy and growth. I believe this is the biggest mistake that many start-ups make. If you’re wearing all the hats, who is looking at where you’re going? When you’re down in the trenches, doing everything, it’s impossible to see the bigger picture.”

Appanna chose his partners carefully with this goal in mind.

“All the partners play a very important role in the business. Ruaan Jacobs’s strength is in the technical expertise he brings to the business and Terry Naidoo’s strength is in the support services he provides to our clients. Terry is our technical manager. He has the most incredible relationship with our customers — everyone wants to work with Terry. But there’s a problem with that too — if we want to scale this business, Terry can’t be the technical point for all of our customers.

“As partners we have decided what our blueprint for service levels will be; this is based on the way Terry deals with clients and he is developing a technical manual that doesn’t only cover the tech side of the business, but how ART Technologies engages with its customers.

“Terry’s putting his essence down on paper — a step-by-step guide to how we do business. That’s how you build a service culture.”

5. Reputation, network and experience count

Many start-ups lack three crucial things when they launch: Their founders haven’t built up a large network, they don’t have a reputation in the market, and they lack experience. All three of these things can (and should) be addressed during start-up phase, but launching with all three can give the business a valuable boost.

Appanna learnt the value of networks at a young age. Born in India, he moved to Zambia with his family as a young child. From there he moved to Tanzania and then Mozambique, attending boarding school in Swaziland and KwaZulu Natal. At each new school, he was greeted by kids who had formed strong bonds.

“I made good friends in those years, but at each new school I recognised how important strong bonds are, particularly as the outsider.”

Appanna’s early career took him back to Mozambique, working with the UN and EY on various projects. When he moved to South Africa, as a non-citizen he connected with his old boss from the UN who offered him a position as information officer for the Regional Director’s team.

His next move would be to the tech company that he would run for just over three years — also the product of previous connections. “Who you know is important, but how you conduct yourself is even more so,” says Appanna. “If your reputation in the market place is good, people will want to do business with you.”

Appanna experienced this first hand when he left to launch his own business. “Some key clients wanted to move with me,” he says. “If I had brought them in it would have settled our business, but I said no to some key customers who hadn’t been mine. I wasn’t ethically comfortable taking them with me.”

One of those multinational clients approached Appanna again six months later, stating they were taking their business out to tender and that they were hoping ART Technologies would pitch for it. “Apart from the Desktop-as-a-Service product, we also provide managed IT services for clients, particularly larger enterprise clients. Due to the client going out on tender and requesting for us to participate, we pitched for the business and won. The relationship with this client has grown, allowing us to offer them some of our services that they are currently testing to implement throughout Africa.”

“I believe how we conduct ourselves is essential. You need your own personal code of ethics, and you need to live by it. Business — particularly in our environment — is built on trust. Our customers need to trust us with their data. Your reputation is key when it comes to trust.”

Interestingly, although Appanna and his team developed their product based on a specific price point, once that trust is built and a certain standard of service is delivered, customers will pay more.

6. Start smart and start lean

Appanna was able to launch ART Technologies with the savings he and his wife, Kate, had put aside. He reached a point where he had ideas he wanted to take to market, but he couldn’t get his current business partners to agree to them — and so setting up his own business became inevitable.

Although he was fortunate to have savings to bootstrap the business, it was essential for the business to be lean and start generating income as quickly as possible. This was achieved in a number of ways.

First, Appanna and Kate agreed on a start-up figure. They would not go beyond it. “We had a budget, and the business needed to make money before that budget was reached.” The runway Appanna gave himself was only six months — highly ambitious given the 18-month runway most start-ups need. “Other than my salary we broke even in month three, which actually extended our runway a bit,” says Appanna.

Appanna had a server that he used to start with, and purchased a second, bigger server four months later. He also launched another business one month before launching ART Technologies — ART Call Management, a virtual PA services business that needed a PABX system, some call centre technology and two employees.

“I’d been playing around with the idea for a while,” says Appanna. “We were focused on SMEs, and I started noticing other challenges they faced. A lot of entrepreneurs just have their cellphones, but they aren’t answering them as businesses — it’s not professional.

“In essence we sell minutes — for R295 you get 25 incoming calls and 50 minutes of transferred calls. We answer the phone as your receptionist, transfer calls and take messages. How you use your minutes is up to you. For example, if you supply the leads, we can cold call for you. ART Technologies uses the call management business as a reception service and to do all of our cold calling. It’s kept the business lean, but it’s also brought in an income that helped us with our runway.” In 2017 ART Call Management was selected as one of the top ten in the SAGE-702 Small Business Awards.

The only problem with almost simultaneously launching two businesses is focus. “It’s incredibly important to know where you’re putting your focus,” says Appanna. “The call management business has been essential to our overall strategy, but my focus has been pulled in different directions at times, and I need to be conscious of that. The most important thing for any start-up is to know exactly where your focus lies.”


Into Africa

Thanks to a distribution deal signed locally with First Distribution, ART Technologies was introduced to Seacom, which has available infrastructure in a data centre in Kenya.

“It’s a pay-per-client model that allows us to pay Seacom a percentage of every client we sign up,” says Appanna. “First Distribution will be our sales arm. They have a webstore and resellers, and we will be opening ART Kenya with a shareholder who knows the local market.”

From there, Appanna is looking to West Africa and Mauritius. “We have the product and the relationship with Seacom gives us the foothold we need to grow into East Africa.”

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Entrepreneur Profiles

Kid Entrepreneurs Who Have Already Built Successful Businesses (And How You Can Too)

All over the world kids are abandoning the traditional notion of choosing a career to pursue until retirement. Gen Z aren’t looking to become employable job-seekers, but creative innovators as emerging business owners.

Diana Albertyn

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kid-entrepreneurs-who-have-already-built-successful-businesses-and-how-you-can-too

Do kids have an advantage or disadvantage when it comes to starting and building a company? It depends on how you look it. Juggling school, friends, family and other aspects of childhood and adolescence comes with its own requirements, but perhaps this is the best age to start.

“Being an entrepreneur means having to learn, focus, and connect to people and these are all traits that are valuable throughout life. Learning this when you are young is especially crucial, and will set you up for success and to be more open to other opportunities,” says billionaire investor, Shark Tank personality and author Mark Cuban.

Here are some of the most successful kidpreneurs who have cashed in on their hobbies, interests and needs to start and grow million dollar businesses borne from passion and innovation:

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Entrepreneur Profiles

30 Top Influential SA Business Leaders

Learn from these South African titans of industry to guide you on your entrepreneurial journey to success.

Nicole Crampton

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Entrepreneurship is said to be the answer to South Africa’s unemployment challenges and slow growth, but to foster entrepreneurship we ideally need business leaders to impact grass root efforts. Business leadership is vital to improved confidence and growth. These three titans of global industry say:

  • “As we look ahead, leaders will be those who empower others.” – Bill Gates
  • “Leaders are also expected to work harder than those who report to them and always make sure that their needs are taken care of before yours.” – Elon Musk
  • “Management is about persuading people to do things they do not want to do, while leadership is about inspiring people to do things they never thought they could.” – Steve Jobs

Here are 30 top influential SA business leaders forging the path towards a prosperous South African future.

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